The state of Texas and Teva Pharmaceutical Industries Ltd. have reached a settlement worth $225 million after claims that the company improperly marketed opioid painkillers that were highly addictive. This is the largest settlement for the drug producer to date.
According to a copy of the settlement, Teva must pay $150 million in cash over the next 15 years. The company is also required to provide $75 million worth of Narcan, a prescription medication used to reverse the effects of opioids, such as heroin or fentanyl. It is often used in known or suspected cases of opioid overdose.
“This agreement is not only another win for Texas, but a major step in the right direction to help people overcome opioid addiction,” Attorney General Ken Paxton stated in a press release. “Pharmaceutical companies must be held accountable for their role in this devastating epidemic. These resources will be used to fund recovery initiatives that will help countless Texans.”
Teva is currently facing more than 3,300 lawsuits. Kare Schultz, the President and CEO of the company, said that the Texas Attorney General is taking steps to fight against the opioid epidemic in the state but negotiating “critical medicines” as part of the solution.
“While the settlement includes no admission of wrongdoing by Teva or its affiliates, it remains in the best interest of Teva to put these cases behind us and continue to focus on the patients we serve every day,” said Schultz in a press release.
Teva has stated that it will continue to defend itself in court in states where no settlement agreement has been reached. The drugmaker said that the settlement with Texas is a critical step forward in treating people who are suffering from opioid addiction.
The settlement comes after a jury in New York found that Teva had engaged in misleading marketing practices that added to the opioid addiction in the state. A judge has not yet set a date for hearings to determine damages.
Prior to that, a California judge had found that the drug production company could not be held liable for the cause of the epidemic, stating that the counties failed during the trial to prove their $50 billion case.
Teva Pharmaceutical Industries Ltd. was established in Jerusalem, Israel, in 1901. The company began as a small wholesale drug business that distributed imported medicines.
Today, it offers the world’s largest selection of pharmaceuticals, providing medications to about 200 million people worldwide.